ALJ/MFG/jyc Mailed 2/18/2003

Decision 03-02-033 February 13, 2003

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (U 338-E) for Approval of Fuel Hedging Cost Recovery.

Application 02-03-016 (Filed March 13, 2002)

Michael D. Montoya, Attorney at Law,

for Southern California Edison Company, Applicant.

James E. Scarff, Attorney at Law, for the Office of

Ratepayer Advocates.

OPINION ON FUEL HEDGING COST RECOVERY

I. Summary

We find that the $208.8 million balance in Southern California Edison Company's (SCE) Risk Management Memorandum Account (RMMA) is reasonable and qualifies as recoverable costs. This balance shall be transferred to SCE's Settlement Rate Balancing Account (SRBA) for recovery. SCE shall submit an advice letter that closes the RMMA and deletes the RMMA from its tariff.